Today was the day that the stress test results leaked out, showing many banks needed to raise capital. That had no negative impact as the numbers could have been much worse, and this notion may have dealt a final blow to the bears betting that the financials (and market) were going to tank lower on bad news. Stronger than expected ADP jobs data came out ahead of this week's unemployment report and helped. Here were the unofficial closing bell levels:
Dow 8,513.95 +103.30 (1.23%)
S&P 500 919.42 +15.62 (1.73%)
Nasdaq 1,759.10 +4.98 (0.28%)
Top Analyst Upgrades
Top Analyst Downgrades
Garmin Ltd. (NASDAQ: GRMN) posted a train wreck for earnings with $0.25 non-GAAP EPS and $437 million in revenues vs. Thomson Reuters estimates of $0.42 EPS and $531.5 million in revenues. These are both down substantially from last year, with a drop of 64% in earnings and a drop of 34% in revenues. Shares were down 14% at $21.95 ahead of the close.
The Blackstone Group (NYSE: BX) had a solid day despite a loss of $93 million for the first quarter of 2009. If you read through the synopsis of the release, it appears as though private equity's return is much closer to fruition. Shares were up 13% at $12.17 right before the close.
Visa Inc. (NYSE: V) filed its much-awaited S-3 with the SEC to allow the company to raise cash if it chooses, although the company has said previously that it has no immediate plans to sell securities. Shares were down 2% at $65.86 right before the close on concern over dilution.
Amazon.com, Inc. (NASDAQ:AMZN) has introduced the much larger version of its Kindle e-book reader with a 9.7-inch electronic paper display that is just over one-third of an inch thick. Traders used the news as a chance to take profits as shares were down 0.6% at $81.35 right before the close.
Citigroup, Inc. (NYSE: C) is a winner today in the leaking out of the bank stress tests. All the reports hint that "only $5 billion" is needed to be raised. Shares were up 12% at $3.70 right before the close.
The other winner was Bank of America (NYSE: BAC), which was reportedly being told to raise more than $30 billion in new capital. The problem with the reports is that it could do that merely by converting preferred and selling a couple side assets. B of A shares were up 12% at $12.17 shortly before the close.
Walt Disney Company (NYSE: DIS) was a winner after earnings. Despite a 46% earnings drop, it appears as though that the company is well positioned for what lies ahead and its theme park business held up far better than expectations because of promotions. Shares were up 11% at $25.71 right before the close.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
5-06-2009 @ 5:40PM
paul s said...
When the market hit 14,000 Time-Warner never hit $25 like many had forecast. Now in the mire of a bear market it knocks at that door. I don't believe anymore.
5-06-2009 @ 6:06PM
Iridium said...
there are many stocks that are above or forecast above the levels they traded at when the market hit 14,000.
There is something very wrong with the market, very very wrong.
5-06-2009 @ 8:58PM
A said...
The manipulators of the market are playing it well and will soon take the helm again to rape the investors LOL
5-10-2009 @ 9:53PM
Roy said...
I too can't shake the feeling that the market is over valued at its present point.
5-06-2009 @ 9:18PM
Mikey said...
Where the Dow is or any other index has no bearing on how you make money in the stock market, unless you are one of those people who put money in and then just sits there and watches. I started investing when the dow hit 8200 it's now at 8500 but my portfolio is up 65%. It's all about trading not where some index number is.
5-07-2009 @ 6:42AM
Buy Stocks Online said...
I just don't get how BofA keeps rising on bad news (or at least I see it that way). Sure they probably won't go under (or the government won't allow them to) but I fear earnings numbers later in the year with all of the banks.
5-07-2009 @ 7:39AM
stump6266 said...
I wish to comment on the closing bell by Maria Bartilomo about her interview with the ceo of Putnam in regard to 401K's.
People have been cheated out of their life savings because of fraud and incompentance of government,stock brokers and the financial industry gurus. While every one perpetrating these fraudulent scam got a bonus.
Who is responsible? The government suggested almost mandated everyone get 401k's and financial experts told investors its their fault, they should have known.
Noone in the government, not bankers,allen Greenspan didn't know, nor did Bernake or CES's of Citi, Morgan Stanley,Bank of America knew John Q. Public was sbeing scammed!
No one did a thing about it!
Then the arrogant CEO of Putnam told Maria Bartilomo the people should invest in Putnam and all the other robbers (my word) in the finanical industry.
Is he nuts? Are we crazy? When do I get my life savings back? I am 82 and I don't have 15 or 20 years to wait, I want my money now.
There are many people in worst shape than I, what is their recourse.
Thanks Maria I saw the look on your facee during the interview.
Stumper